If you’ve been watching the real estate market lately, it will come as no surprise to you that the market has been on a significant upward trend since the onset of the pandemic.
Yet, as demand in the housing market continues to grow and supplies diminish, newly released data shows that sales are down.
With this most recent real estate data coming out this week, today we’re going to dive into the details of the housing market as it currently stands and what this recent change could mean for your property and your financial investments…
New Home Sales
Despite this well-known fact in today’s real estate market, data was recently released showing that new home sales – which accounts for about 10% of the overall housing market — had unexpectedly slid downward as prices continued to hit their record highs.
According to the Census Bureau and Department of Housing and Urban Development, sales of new single-family homes fell 5.9% in the month of May to a seasonally adjusted annual rate of 769,000.
New home construction has continued to slow in recent months as prices soar, not just on the homes themselves, but on the supplies needed to build them.
Lumber, for example, has been in high demand ever since the recent pandemic quarantine and, as such, prices have continued to go up in the market.
A surge in lumber prices just this year, in fact, added $36,000 to the cost of building an average sized new home, bringing the national average to $374,400 for newly constructed homes.
Existing Home Sales
In addition to new home sales, the existing home market continued to fall for the fourth month in a row as prices continued to climb out of reach of potential buyers.
According to the National Association of Realtors, the number of closed contracts fell 0.9% in May to a seasonally adjusted annual rate of 5.8 million… Down from the 5.85 million reported in April.
The median existing home price has continued to rise during this most recent real estate boom, recently growing a whopping 23.6% to today’s average $350,300 asking price.
And as for demographics, only the midwestern United States continues to see growth where sales were reportedly up 1.6%. As for the other areas of the country, the West, South and Northeast all declined by 4.1%, 0.4% and 1.4% respectively.
Learn More Here…
As the markets work to make their way back to pre-pandemic rates, some investors are beginning to think this most recent “real estate bubble” echoes what we saw in the pre-2008 markets as housing continues to take off just like it did before the 2008 crash.
If you’re interested in getting on top of your investments and preparing for market movements in any direction, then we encourage you to sit down with DTI founder and head trader Tom Busby below as he delves into the details of today’s markets and his plan of attack!
P.S. – Don’t forget to check out market pro Jack Carter’s most recent FREE WEBINAR to discover how this former hedge fund manager is able to harness an incredible market force to consistently pick high-probability stocks every week!